Thousands of employees at one of the largest steel factory in Australia, which are placed in administration, wait to see if their futures can be protected.
Prime Minister Anthony Albanese and South Australian Prime Minister Peter Malinauskas will visit Whyalla on Thursday to announce a joint support package, a day after the wrestling owner GFG Alliance was overtaken by the order.
The unusual outcome came after the SA government had rushed through the parliament on Wednesday through parliament, giving it the authority to act on debts that GFG owed in an attempt to secure the future activities of the steelwork.
But the owner of GFG, British billionaire Sanjeev Gupta, said that the state was on the 'wrong course' to force the operation in the administration and that he was looking for legal advice, according to an internal company memo obtained by the Australian Financial Review.
'This news will be disappointing all of us, not in the last place for me personally, given the enormous efforts we all made to save Whyalla in 2017 when it would return $ 1 million a day in 2024 after an almost Death experience, and promotes why the magnetite potential of a global audience, “said Gupta, according to the report.
Mr. Malinauskas said that the federal government was kept informed of the situation around the steel factory, while the crisis was aware in recent weeks.
“It's not something we do light,” he said Nine on Thursday, referring to the administration campaign.
The prime minister will announce an industrial support package for the Whyalla Steelworks
“What we want to do is invest in the future of the new steel works,” said Prime Minister Peter Malinauskas
'We can't lose it (Whyalla).
'It is important for the nation … so much of the steel that we use, and everything in Australia, is made in the factory … and these people need safety and stability.
“The former owner just didn't give that.”
GFG has an intense pressure from the government to pay debts to creditors of the SteelWorks and the state, which owes 'tens of millions of dollars', including $ 15 million in Sa Water.
Malinauskas said that manager Kordamentha would explore a possible sale of the company.
“I am really determined to ensure that we do not save GFG,” he said.
“What we want to do is invest in the future of the new Steelworks.”
In Whyalla on Thursday, he and the Prime Minister will announce one of the most extensive industrial support packages that this nation has ever seen and could be no less than $ 2 billion.
It is not yet known how great a role the federal government will play in the support package, but Mr Albanese and Minister of Industry will be in Whyalla.
Forcing the steel factory in administration was the 'wrong course', said GFG owner Sanjeev Gupta
“As a nation we must have the opportunity to put together the two and produce steel for ourselves, otherwise we will be completely dependent on other countries that deliver American steel,” said Malinauskas.
“In the current geopolitical conditions we need sovereign steel that makes this country.”
Mr. Malinauskas said that “taxpayers should step on the record if we want to make steel as a country.”
The federal opposition said it was the decision of the SA government to place the steel factory in administration and wait for details of the support package.
After months of uncertainty, the move comes to the Steelworks and the reassignments of his chairman.
Mr. Gupta said on Friday that a debt scheme Deal had been reached with creditors of Global Financier Greensill Capital, who had advanced billions of dollars in credit to GFG before he collapsed in 2021.
He later said that the Steelworks overlooked $ 13 million to $ 14 million a week and hoped it would even break the middle of the year.
